In fact, before Huawei, there were no Chinese companies suing Korean companies for patents. The Korean industry worried that Chinese companies would attack from all directions. Electronic News and IP Nomics analyzed Huawei's patent portfolio and found that in 2013 Huawei purchased 114 patents from other companies. In 2006, Huawei purchased only one patent from a foreign company. In 2012, it only purchased 33 patents.
In 2013, Huawei increased its purchasing power to purchase from global companies, including Sharp, IBM and NCR, as well as other Chinese companies. In 2013, Huawei purchased three times more patents than from 2006 to 2012.
Sue Samsung with Sharp patent
It was in 2013 that Huawei began to negotiate patent issues with Samsung. Last month, just before Samsung was preparing to sue Huawei, Huawei also tried to sign a licensing agreement with Samsung. Huawei believes that Samsung has infringed its patents, but Huawei's efforts have not worked. An industry representative said: "Huawei has purchased some essential patents and is preparing to sue Samsung. It will use these patents as weapons. It can be seen that Huawei has done a lot of preparations for patent lawsuits."
Huawei claims that Samsung infringed 11 patents, including Patent No. 8885583 (US Patent No.), which relates to the synchronization of conditional uplink time for mobile communication devices. This patent was acquired by Huawei from Sharp. In 2013, Huawei purchased 62 patents for Sharp. Experts believe that at the time, Huawei bought patents mainly to deal with litigation. It can be seen that Huawei has been preparing for litigation many years ago.
“If there is no relationship with NPE (there is no entity, it means that some institutions have many patents but no products), in most patent litigations, the patents involved are generally specific companies.†PatentPia patent agent Kang Min-soo said, “ In fact, Huawei used patents purchased from other companies when suing, suggesting that Huawei purchased patents in response to possible litigation."
Chinese companies are no longer afraid of patent wars
Based on this judgment, the Korean industry is worried that Huawei will continue to purchase patents and continue to sue. In 2014, Huawei's pace of purchasing patents began to slow down, only 25 patents were acquired, but by the time it accelerated in 2015, a total of 107 patents were purchased. On the one hand, Huawei has acquired patents from global companies. On the other hand, Huawei has also expanded its business with these companies.
So far, Huawei has acquired 51 patents this year. The industry believes that Huawei may acquire 100 patents this year.
Many people believe that Huawei's move may encourage other Chinese companies. In the past, Chinese companies were afraid of patent wars, and now they are no longer afraid. So far, Chinese companies have been copying the creativity, design and technology of other companies. For this reason, Chinese companies have great risks. These risks are invisible on the surface, and they are actually deeper and more risky in foreign markets. Huawei's patent litigation war against Samsung may touch other Chinese companies. If Chinese companies have a good patent portfolio, they are likely to become the main agents of patent litigation. This is a bit like “risk hedgingâ€.
"In the future, there will be more Chinese companies launching patent litigation against Korean companies." PatentPia patent attorney Kang Min-soo said, "Like Huawei, there will be more companies buying patents and improving their competitive advantage."
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